A sole proprietorship was started on January 1, Year 1, when it received $72,500 cash from Marlin Jones, the owner. During Year 1, thecompany earned $36,800 in cash revenues and paid $21,150 in cash expenses. Jones withdrew $4,200 cash from the business duringYear 1.RequiredPrepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows forJones's Year 1 fiscal year.Complete this question by entering your answers in the tabs below.IncomeCapitalStatement StatementPrepare the income statement.MARLIN JONES SOLE PROPRIETORSHIPIncome StatementFor the Year Ended December 31, Year 1Balance Stmt of CashSheetFlows< Income StatementCapital Statement >

In this question, we will first calculate the 1. Income Statement 2. Capital Statement 3.…

A sole proprietorship was started on January 1, Year 1, when it received $72,500 cash from Marlin Jones, the owner company earned $36,800 in cash revenues and paid $21,150 in cash expenses. Jones withdrew $4,200 cash from Your'

A sole proprietorship was started on January 1, Year 1, when it received $72,500 cash from Marlin Jones, the owner company earned $36,800 in cash revenues and paid $21,150 in cash expenses. Jones withdrew $4,200 cash from Your'

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On December 1, Jasmin Ernst organized Ernst Consulting; on December 3, the owner contributed $83,540 in assets in exchange for its common stock to launch the business. On December 31, the company's records show the following items and amounts. $12,650 13,520 2,850 45,940 17,530 8,110 83,540 $ 1,570 13,520 3,110 6,490 Cash Cash dividends Accounts receivable Consulting revenue Office supplies Rent expense Salaries expense Telephone expense Miscellaneous expenses Land Office equipment Accounts payable 850 660 Common stock
Jones Enterprises was started when it acquired $4,800 cash from creditors and $7,200 from owners. The company immediately purchased land that cost $10,000. After all events have been recorded, Jones’s stockholders’ equity represents what percentage of total assets? Assume the debt is due. Given that Jones has $7,200 in stockholders’ equity, can the company repay the creditors at this point?
At the beginning of the year, the owner’s capital of SLG Company is $300,000 while its liabilities at the end of the year are $180,000. During the year, the owner withdrew cash for his personal use amounting to $80,000 and the results of operations showed revenues of $900,000 and expenses amounted to $320,000. What is the amount of SLG Company’s total assets at the end of the year? — $980,000 Question: If the total liabilities decreased by $25,000 during a period and equity increased by $30,000 during the same period, what is the amount and direction (increase or decrease) of the period’s change in total assets? a) $5,000 decreaseb) $5,000 increasec) $55,000 increased) $55,000 decrease
Austin Land Company sold land for $59,930 in cash. The land was originally purchased for $34,230. At the time of the sale, $12,300 was still owed to Regions Bank. After the sale, Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation. Enter all dollar amounts as positive numbers. Line Item Description Effect Amount Total assets Total liabilities Stockholders' equity
[The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,580 in assets in exchange for its common stock to launch the business. On October 31, the company's records show the following items and amounts. Retained eamings, October 1 as $0. $ 9,390 16,020 3,830 45,980 18,550 9,060 84,580 Cash dividends Consulting revenue Rent expense Salaries expense Telephone expense Miscellaneous expenses $ 2,650 16,820 4,190 7,570 830 650 Cash Accounts receivable Office supplies Land office equipment Accounts payable Common stock Exercise 1-17 Preparlng a balance sheet LO P2 Using the above information prepare an October 31 balance sheet for Ernst Consulting. ERNST CONSULTING Balance Sheet 2$
You are the bookkeeper for Harley Inc., a newly formed corporation. Harley had the following transactions for their business: * Four shareholders contributed $40,000 ($10,000 each) in exchange for Harley common stock. * Harley purchased inventory for $5,000. Harley received an invoice for the inventory that is due in 30 days. What are the effects on Harley's accounting equation? A B D Based on the two transactions, Assets increased by $40,000, Liabilities decreased by $5,000 and Shareholder Equity increased by $45,000. Based on the two transactions, Assets increased by $45,000, Liabilities increased by $5,000 and Shareholder Equity increased by $40,000. C Based on the two transactions, Assets increased by $15,000, Liabilities increased by $5,000 and Shareholder Equity increased by $10,000. Based on the two transactions, Assets increased by $35,000, Liabilities decreased by $5,000 and Shareholder Equity increased by $40,000.
mework i Baird Company began operations on January 1, Year 1, by issuing common stock for $34,000 cash. During Year 1, Baird received $53,100 cash from revenue and incurred costs that required $38,100 of cash payments. Problem 10-26A (Algo) Part b Prepare a GAAP-based income statement and balance sheet for Baird Company for Year 1, under the following independent scenario: b. Baird is in the car rental business. The $38,100 was paid to purchase automobiles. The automobiles were purchased on January 1, Year 1, and have three-year useful lives, with no expected salvage value. Baird uses straight-line depreciation. The revenue was generated by leasing the automobiles. Complete this question by entering your answer in the tabs below. Income Statement 2 Prepare an Income Statement. W Balance Sheet S BAIRD COMPANY Income Statement for Year 1 7 3 E D 4 $ $ R D F 0 0 % 5 * 8 J 1 ( 9 K O 0 L P Help >
This information relates to McCall Real Estate Agency. Oct. 1 Stockholders invest $31,020 in exchange for common stock of the corporation. 2 Hires an administrative assistant at an annual salary of $42,960. 3 Buys office furniture for $4,110, on account. 6 Sells a house and lot for E. C. Roads; commissions due from Roads, $11,340 (not paid by Roads at this time). 10 Receives cash of $215 as commission for acting as rental agent renting an apartment. 27 Pays $730 on account for the office furniture purchased on October 3. 30 Pays the administrative assistant $3,580 in salary for October. Prepare the debit–credit analysis for each transaction
Kath, Julia and Janel formed a joint operation. Kath is to act as managing joint operator and is designated to record the joint operation accounts in his books. As manager, he is alloweda salary of P12,000. Remaining profit (loss) is to be divided equally.The following balances appear at the end of 20x6 before adjustments for joint operation's inventory and profits. Joint operations cash (dr). P48,000; Julia, capital (dr), 3.000; Janel, capital (cr). P27,000. The arrangement is to terminate on December 31, 20x6 with unsold merchandise costing P10,400. Assuming that the joint operations profit is P5,000, what is the balance of the Joint Operation's account before the distribution of profit? 5,400(Dr) P6,400(Cr) 19,000(Dr) 15,400(Dr) During the liquidation, the sale of all the assets of liquidated corporation resulted to net proceeds of P500,000. Liquidation expense amounting to P30,000 has been paid at the start of liquidation from the net proceeds of disposal of all assets. Before the…
Listed below are ten business transactions for Puring Company during its first month of operations: Owner invested cash in the business amounting to P300 000 Purchased equipment for cash amounting to P50 000 Purchased inventories through credit amounting to P35 000 Purchased furniture amounting to P30 000. Made partial payment with cash (P10 000) and incurred an accounts payable for the balance (P20 000) Paid cash to the local government for business permit (P9 000) Made sales of P17 000 - P12 000 cash sales, P5 000 credit sales. The cost of the sales made in (f) amounted to P8 500. Paid the accounts payable in (d) Collected P2 500 out of the P5 000 credit sales in (f) Paid employee P12 000Indicate the effects of the given transactions on each of the financial statement elements in the table shown below. The answer for transaction (a) is given as an example: Assets = Liabilities + Equity Revenues Expenses a. P300 000 P300 000…
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Borrowed $40,000 cash from National Bank. 3. Earned cash revenues of $48,000 for performing services. 4. Paid cash expenses of $45,000. 5. Paid a $1,000 cash dividend to the stockholders. 6. Acquired an additional $20,000 cash from the issue of common stock. 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $53,000 cash to purchase land. 9. Determined that the market value of the land is $75,000. e. Determine the net cash flows from operating activities, investing activities, and financing activities that Maben would report on the Year 1 statement of cash flows. Note: Enter cash outflows as negative amounts. Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities